1.1 	A bill for an act
1.2 	relating to the city of Austin; authorizing the city to impose a sales and use tax. 
1.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.4 	Section 1. CITY OF AUSTIN; TAXES AUTHORIZED.
 1.5 		Subdivision 1.Sales and use tax. Notwithstanding Minnesota Statutes, section 
1.6 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the 
1.7 	voters pursuant to Minnesota Statutes, section 297A.99, at the next general election or 
1.8 	special election held for that purpose before January 1, 2007, the city of Austin may 
1.9 	impose by ordinance a sales and use tax of up to one-half of one percent for the purpose 
1.10 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
1.11 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, 
1.12 	and enforcement of the tax authorized under this subdivision.
1.13 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 
1.14 	1 must be used by the city of Austin to pay all or part of the capital or administrative costs 
1.15 	of flood mitigation projects in the city of Austin. Authorized expenses include, but are not 
1.16 	limited to, acquiring property and paying construction and engineering expenses related 
1.17 	to the flood mitigation projects.
1.18 		Subd. 3.Termination of tax. The tax authorized under subdivision 1 terminates at 
1.19 	the earlier of:
1.20 	(1) 20 years after the date of initial imposition of the tax; or
1.21 	(2) when the Austin City Council determines that the amount described in 
1.22 	subdivision 2 has been received from the tax to finance the capital and administrative costs 
1.23 	for the projects specified in subdivision 2. 
2.1 	Any funds remaining after completion of the projects specified in subdivision 2 may 
2.2 	be placed in the general fund of the city. The tax imposed under subdivision 1 may expire 
2.3 	at an earlier time if the city so determines by ordinance.

2.4 	EFFECTIVE DATE. This section is effective the day after compliance by 
2.5 	the governing body of the city of Austin with Minnesota Statutes, section 645.021, 
2.6 	subdivisions 2 and 3.